Pakistan Railways loss of Rs 26 billions in FY 2015-16

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Pakistan Railways loss of Rs 26 billions in FY 2015-16

ISLAMABAD: (APP) Pakistan Railways suffered losses of Rs 26.993 billion during the fiscal year 2015-16, down by 0.93 percent as compared to fiscal year 2014-15.

In a written reply to the Senate on Friday, the Ministry for Railways says it is not a fact that Pakistan Railways suffered a loss of more than Rs. 28 billion during the fiscal year 2015-16.

Instead, it said Pakistan Railways suffered a loss of Rs. 26.993 billion during the fiscal year 2015-16 which is less by 0.93 percent over the last fiscal year 2014-15.

The House was informed that Pakistan Railways incurred expenditure of Rs. 59.177 billion instead of Rs. 57.03 billion during 2014-15 as indicated in the question. However, the expenditure increased from Rs. 59.177 billion during 2014-15 to Rs. 63.156 billion instead of Rs. 64.23 billion during the fiscal year 2015-16.

The major reasons for increase in expenditure of Rs. 3.979 billion during 2015-16 over the previous fiscal year 2014-15 included increase in salary and pension of federal government employees and pensioners.

Moreover, it says government had also allowed family pension to widow and divorced daughters, extending financial relief to the families of deceased government pensioners.

Besides other reasons, included restoration of pension which was stopped in December 2001 had been restored by present Government.

The main reason for decrease in operating expenditures was the decrease in fuel prices in international market.

However, the other operating expenditure (other than fuel) were increased but overall financial impact remained on lower side as the factor of decrease in fuel prices nullify the financial impact of increase in other operating expenditure during the fiscal year 2015-16.